IES Holdings, Inc. (or “IES” or the “Company”) (NASDAQ: IESC) today
announced financial results for the quarter ended June 30, 2024.
Third Quarter
2024 Highlights and Recent
Developments
-
Revenue of $768 million for the third quarter of fiscal 2024, an
increase of 31% compared with $584 million for the same quarter of
fiscal 2023
- Operating income of $90.2 million
for the third quarter of fiscal 2024, an increase of 163% compared
with $34.3 million for the same quarter of fiscal 2023
- Net income attributable to IES of
$62.1 million for the third quarter of fiscal 2024, an increase of
175% compared with $22.5 million for the same quarter of fiscal
2023, and diluted earnings per share attributable to common
stockholders of $2.67 for the third quarter of fiscal 2024,
compared with $0.81 for the same quarter of fiscal 2023
- Adjusted net income attributable to
IES (a non-GAAP financial measure, as defined below) of
$62.1 million for the third quarter of fiscal 2024, an
increase of 123% compared with $27.9 million for the same
quarter of fiscal 2023, and diluted adjusted earnings per share
attributable to common stockholders of $2.67 for the third quarter
of fiscal 2024, compared with $1.08 for the same quarter of fiscal
2023
- Remaining performance obligations, a
GAAP measure of future revenue to be recognized from current
contracts with customers, of approximately $1.2 billion as of June
30, 2024
- Backlog (a non-GAAP financial measure, as defined below) of
approximately $1.7 billion as of June 30, 2024
- Board of Directors authorized a new $200 million share
repurchase program
Overview of Results
“Our continued strong financial performance in the third quarter
of fiscal 2024 reflects the benefit of the investments we have made
to support the growth of our businesses," said Jeff Gendell,
Chairman and Chief Executive Officer. "Our Residential segment
continues to expand our plumbing and HVAC service offerings into
markets where we previously offered only electrical services, while
also expanding all service offerings into new geographic markets.
These expansions, combined with increasing market share in existing
electrical markets, have resulted in our Residential segment's
growth outpacing growth of the housing market in general. Our
Communications, Infrastructure Solutions, and Commercial &
Industrial segments continued to benefit from strong demand,
particularly in the data center market. Operating margins across
all four segments were strong, reflecting process improvements,
robust customer demand, operating leverage from our increased scale
and strong project execution across all four segments. We expect
continued strong performance for the remainder of this fiscal year
and into fiscal 2025.
"We have continued to focus on capital allocation, putting our
operating cash flow to work to grow the business. As previously
announced, in April 2024, we acquired Greiner Industries, based in
Mount Joy, Pennsylvania and acquired a previously leased facility
in Rock Hill, South Carolina to provide additional capacity to
support strong customer demand in our Infrastructure Solutions
segment. In addition, in June 2024, we acquired the remaining 20%
interest in Bayonet Plumbing, Heating & Air Conditioning, in
which we purchased our initial 80% interest in December, 2020.
Robbie Blankenship, previously CEO of Bayonet and part owner of the
business, will take an expanded leadership role in developing the
plumbing and HVAC service offerings throughout our residential end
markets as Vice President of HVAC and Plumbing for all of IES
Residential. Collectively, these actions support our strategy of
expanding product offerings and geographic reach to meet the needs
of our customers. Finally, we repurchased $20.9 million in shares
during the third quarter of fiscal 2024."
Our Communications segment’s revenue was $192.3 million in
the third quarter of fiscal 2024, an increase of 36% compared with
the third quarter of fiscal 2023. Increased demand across the
business, particularly in the data center end market, drove the
growth, while demand in the high tech manufacturing and
distribution center end markets also remained strong. The segment's
operating income increased to $21.0 million for the third
quarter of fiscal 2024, compared with $13.5 million for the
third quarter of fiscal 2023, as we benefited from increased
volumes and favorable contract pricing.
Our Residential segment’s revenue was $377.5 million in the
third quarter of fiscal 2024, an increase of 19% compared with the
third quarter of fiscal 2023. Our single-family business benefited
from strong demand and expansion of our plumbing and HVAC service
offerings, while successful execution of backlog contributed to
revenue growth in our multi-family business. While the outlook in
the multi-family market suggests new project activity may slow over
the coming year, we expect that continued expansion of our plumbing
and HVAC offerings and our ability to offer multiple trades to our
customers will provide additional growth opportunities for our
business. The Residential segment’s operating income increased to
$43.7 million for the third quarter of fiscal 2024, compared
with $15.4 million for the third quarter of fiscal 2023.
Margins increased year over year as a result of favorable purchases
of certain materials and improved project execution in our
multi-family business, as well as improved procurement processes
and more disciplined project selection implemented as part of the
reorganization of our Residential segment we began in April
2023.
Our Infrastructure Solutions segment’s revenue was
$102.0 million in the third quarter of fiscal 2024, an
increase of 79% compared with the third quarter of fiscal 2023,
driven by continued strong demand in our custom power solutions
business, including generator enclosures, primarily for the data
center end market. Greiner Industries, which we acquired on April
1, 2024, contributed $15.3 million of the increase. Operating
income for the third quarter of fiscal 2024 was $19.8 million,
compared with $8.2 million for the third quarter of fiscal
2023. The year-over-year profit improvement was driven primarily by
higher volumes, improved pricing and operating efficiencies at our
facilities as well as the impact of investments we have made over
the last several years to increase capacity. Greiner contributed
$0.7 million of operating income for the third quarter of
fiscal 2024.
Our Commercial & Industrial segment’s revenue was
$96.6 million in the third quarter of fiscal 2024, an increase
of 42% compared with $67.8 million in the third quarter of
fiscal 2023, while segment operating income for the third quarter
of fiscal 2024 was $13.0 million, compared with
$2.6 million for the third quarter of fiscal 2023. The
improved results for the third quarter of fiscal 2024 largely
reflect a strong contribution from a large data center project
where we completed additions to the original scope of work at
favorable margins. We also benefited from solid execution and
improved bid margins across the business. As the large data center
project that enhanced recent quarters' financial performance
approaches completion, we expect segment revenue and operating
income to decrease next fiscal quarter, as compared with the second
and third quarters of fiscal 2024, when activity on this project
was at its peak.
Matt Simmes, President and Chief Operating Officer, commented,
“We are pleased with continued strong operating margins in all four
of our business segments. Our investments to upgrade and expand
capacity in our Infrastructure Solutions business have allowed us
to materially increase capacity while adding new product offerings
through the Greiner acquisition, and we continue to see improved
margins from some of our prior years' expansions. Our Commercial
& Industrial segment is approaching completion of a large
project that has benefited recent quarters, and will continue to
evaluate opportunities for future projects, while maintaining a
focus on managing contract risk. As our Residential segment
continues process improvements stemming from the reorganization
started in April 2023, we are well positioned to continue to pursue
profitable growth, including through the national expansion of the
HVAC and plumbing trades under the leadership of Robbie
Blankenship, who grew these service offerings significantly in the
Florida market at Bayonet.”
“In line with our proven capital allocation strategy, we were
able to use our strong balance sheet and put our cash to work,"
added Tracy McLauchlin, Chief Financial Officer. "During the third
quarter of fiscal 2024, we invested $102.4 million on the Greiner
acquisition, the purchase of the Rock Hill facility, and the
purchase of the noncontrolling interest in Bayonet. We also
deployed $20.9 million to acquire 157,505 shares under our share
repurchase program. Despite these cash outlays, we ended the
quarter with a cash balance of $44.9 million. We continued
repurchasing shares under the program after quarter end, purchasing
an additional 119,041 shares for $16.7 million in July 2024, which
fully utilized the $40 million previously authorized by our Board.
We expect to continue our strong cash flow generation for the
remainder of fiscal 2024, positioning us to fund both organic
expansion and acquisitions, as well as provide capital for stock
repurchases or other investments. Finally, as a reminder, we
substantially utilized our federal tax net operating loss
carryforwards during fiscal 2023, and as a result, we will have a
higher cash tax rate in fiscal 2024.”
Stock Buyback Plan
In December 2022, our Board of Directors approved a new $40
million stock repurchase program. During the quarter ended June 30,
2024, the Company repurchased 157,505 shares under this repurchase
program for $20.9 million. The Company had $16.7 million remaining
authorized at June 30, 2024, and had fully utilized the remaining
authorization as of July 31, 2024, reflecting purchases subsequent
to quarter end. On July 31, 2024, the Board approved a new $200
million share repurchase program.
Non-GAAP Financial Measures and Other
Adjustments
This press release includes adjusted net income attributable to
IES, adjusted diluted earnings per share attributable to common
stockholders, and backlog, and, in the non-GAAP reconciliation
tables included herein, adjusted net income attributable to common
stockholders, adjusted EBITDA and adjusted net income before taxes,
each of which is a financial measure not calculated in accordance
with generally accepted accounting principles in the U.S. (“GAAP”).
Management believes that these measures provide useful information
to our investors by, in the case of adjusted net income
attributable to common stockholders, adjusted earnings per share
attributable to common stockholders, adjusted EBITDA and adjusted
net income before taxes, distinguishing certain nonrecurring events
such as litigation settlements, significant expenses associated
with leadership changes, or gains or losses from the sale of a
business, or noncash events, such as impairment charges or our
valuation allowances release and write-down of our deferred tax
assets, or, in the case of backlog, providing a common measurement
used in IES's industry, as described further below, and that these
measures, when reconciled to the most directly comparable GAAP
measures, help our investors to better identify underlying trends
in the operations of our business and facilitate easier comparisons
of our financial performance with prior and future periods and to
our peers. Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
calculated in accordance with GAAP. Investors are encouraged to
review the reconciliation of these non-GAAP measures to their most
directly comparable GAAP financial measures, which has been
provided in the financial tables included in this press
release.
Remaining performance obligations represent the unrecognized
revenue value of our contract commitments. While backlog is not a
defined term under GAAP, it is a common measurement used in IES’s
industry and IES believes this non-GAAP measure enables it to more
effectively forecast its future results and better identify future
operating trends that may not otherwise be apparent. IES’s
remaining performance obligations are a component of IES’s backlog
calculation, which also includes signed agreements and letters of
intent which we do not have a legal right to enforce prior to work
starting. These arrangements are excluded from remaining
performance obligations until work begins. IES’s methodology for
determining backlog may not be comparable to the methodologies used
by other companies.
For further details on the Company’s financial results, please
refer to the Company’s quarterly report on Form 10-Q for the fiscal
quarter ended June 30, 2024, to be filed with the Securities and
Exchange Commission ("SEC") by August 2, 2024, and any
amendments thereto.
About IES Holdings, Inc.
IES designs and installs integrated electrical and technology
systems and provides infrastructure products and services to a
variety of end markets, including data centers, residential
housing, and commercial and industrial facilities. Our more than
9,000 employees serve clients in the United States. For more
information about IES, please visit www.ies-co.com.
Company Contact:
Tracy McLauchlinChief Financial OfficerIES Holdings, Inc.(713)
860-1500
Investor Relations Contact:
Robert Winters or Stephen PoeAlpha IR
Group312-445-2870IESC@alpha-ir.com
Certain statements in this release may be deemed
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, all of which are based upon various estimates
and assumptions that the Company believes to be reasonable as of
the date hereof. In some cases, you can identify forward-looking
statements by terminology such as “may,” “will,” “could,” “should,”
“expect,” “plan,” “project,” “intend,” “anticipate,” “believe,”
“seek,” “estimate,” “predict,” “potential,” “pursue,” “target,”
“continue,” the negative of such terms or other comparable
terminology. These statements involve risks and uncertainties that
could cause the Company’s actual future outcomes to differ
materially from those set forth in such statements. Such risks and
uncertainties include, but are not limited to, the impact of the
COVID-19 outbreak or future pandemics on our business, including
the potential for job site closures or work stoppages, supply chain
disruptions, delays in awarding new projects, construction delays,
reduced demand for our services, delays in our ability to collect
from our customers, or illness of management or other employees;
the ability of our controlling shareholder to take action not
aligned with other shareholders; the potential recognition of
valuation allowances or write-downs on deferred tax assets; the
inability to carry out plans and strategies as expected, including
our inability to identify and complete acquisitions that meet our
investment criteria in furtherance of our corporate strategy, or
the subsequent underperformance of those acquisitions; competition
in the industries in which we operate, both from third parties and
former employees, which could result in the loss of one or more
customers or lead to lower margins on new projects; fluctuations in
operating activity due to downturns in levels of construction or
the housing market, seasonality and differing regional economic
conditions; the possibility of inaccurate estimates used when
entering into fixed-price contracts and our ability to successfully
manage projects, as well as other risk factors discussed in this
document, in the Company’s annual report on Form 10-K for the year
ended September 30, 2023 and in the Company’s other reports on file
with the SEC. You should understand that such risk factors could
cause future outcomes to differ materially from those experienced
previously or those expressed in such forward-looking statements.
The Company undertakes no obligation to publicly update or revise
any information, including information concerning its controlling
shareholder, deferred tax assets, borrowing availability, or cash
position, or any forward-looking statements to reflect events or
circumstances that may arise after the date of this release.
Forward-looking statements are provided in this
press release pursuant to the safe harbor established under the
Private Securities Litigation Reform Act of 1995 and should be
evaluated in the context of the estimates, assumptions,
uncertainties, and risks described herein.
General information about IES Holdings, Inc. can
be found at http://www.ies-co.com under "Investor Relations."
The Company's annual report on Form 10-K, quarterly reports on Form
10-Q and current reports on Form 8-K, as well as any amendments to
those reports, are available free of charge through the Company's
website as soon as reasonably practicable after they are filed
with, or furnished to, the SEC.
IES HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS(DOLLARS IN MILLIONS, EXCEPT PER SHARE
DATA)(UNAUDITED)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
768.4 |
|
|
$ |
584.4 |
|
|
$ |
2,108.6 |
|
|
$ |
1,728.2 |
|
Cost of
services |
|
573.6 |
|
|
|
476.8 |
|
|
|
1,598.4 |
|
|
|
1,424.2 |
|
|
Gross profit |
|
194.8 |
|
|
|
107.6 |
|
|
|
510.2 |
|
|
|
304.0 |
|
Selling, general
and administrative expenses |
|
104.7 |
|
|
|
74.3 |
|
|
|
285.8 |
|
|
|
211.4 |
|
Contingent
consideration |
|
0.1 |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
0.2 |
|
Gain on sale of
assets |
|
(0.2 |
) |
|
|
(1.0 |
) |
|
|
(1.6 |
) |
|
|
(14.2 |
) |
|
Operating income |
|
90.2 |
|
|
|
34.3 |
|
|
|
225.9 |
|
|
|
106.6 |
|
Interest
expense |
|
0.4 |
|
|
|
0.4 |
|
|
|
1.2 |
|
|
|
2.6 |
|
Other (income)
expense, net |
|
0.6 |
|
|
|
(0.1 |
) |
|
|
0.3 |
|
|
|
(1.2 |
) |
|
Income from operations before
income taxes |
|
89.2 |
|
|
|
34.1 |
|
|
|
224.4 |
|
|
|
105.2 |
|
Provision for
income taxes |
|
22.6 |
|
|
|
8.2 |
|
|
|
57.4 |
|
|
|
26.4 |
|
|
Net income |
|
66.6 |
|
|
|
25.9 |
|
|
|
167.0 |
|
|
|
78.8 |
|
Net income
attributable to noncontrolling interest |
|
(4.5 |
) |
|
|
(3.3 |
) |
|
|
(11.0 |
) |
|
|
(8.3 |
) |
|
Net income attributable to IES
Holdings, Inc. |
$ |
62.1 |
|
|
$ |
22.5 |
|
|
$ |
156.0 |
|
|
$ |
70.5 |
|
|
|
|
|
|
|
|
|
|
Computation of
earnings per share: |
|
|
|
|
|
|
|
Net income
attributable to IES Holdings, Inc. |
$ |
62.1 |
|
|
$ |
22.5 |
|
|
$ |
156.0 |
|
|
$ |
70.5 |
|
Increase in
noncontrolling interest |
|
(7.4 |
) |
|
|
(5.9 |
) |
|
|
(16.1 |
) |
|
|
(11.7 |
) |
Net income
attributable to common stockholders of IES Holdings, Inc. |
$ |
54.7 |
|
|
$ |
16.6 |
|
|
$ |
139.9 |
|
|
$ |
58.7 |
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to common stockholders: |
|
|
|
|
|
|
|
|
Basic |
$ |
2.71 |
|
|
$ |
0.82 |
|
|
$ |
6.92 |
|
|
$ |
2.91 |
|
|
Diluted |
$ |
2.67 |
|
|
$ |
0.81 |
|
|
$ |
6.84 |
|
|
$ |
2.88 |
|
|
|
|
|
|
|
|
|
|
Shares used in the
computation of earnings per share: |
|
|
|
|
|
|
|
|
Basic (in thousands) |
|
20,224 |
|
|
|
20,182 |
|
|
|
20,217 |
|
|
|
20,198 |
|
|
Diluted (in thousands) |
|
20,497 |
|
|
|
20,406 |
|
|
|
20,463 |
|
|
|
20,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IES HOLDINGS, INC. AND
SUBSIDIARIESNON-GAAP RECONCILIATION OF ADJUSTED
NET INCOME ATTRIBUTABLETO IES HOLDINGS, INC. AND
ADJUSTED EARNINGS PER SHAREATTRIBUTABLE TO COMMON
STOCKHOLDERS(DOLLARS IN MILLIONS, EXCEPT PER SHARE
DATA)(UNAUDITED)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income
attributable to IES Holdings, Inc. |
$ |
62.1 |
|
|
$ |
22.5 |
|
|
$ |
156.0 |
|
|
$ |
70.5 |
|
Gain on sale of
STR Mechanical |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13.0 |
) |
Gain on sale of
real estate |
|
— |
|
|
|
(1.0 |
) |
|
|
— |
|
|
|
(1.0 |
) |
Severance
expense |
|
— |
|
|
|
3.6 |
|
|
|
— |
|
|
|
3.6 |
|
Provision for
income taxes |
|
22.6 |
|
|
|
8.2 |
|
|
|
57.4 |
|
|
|
26.4 |
|
|
Adjusted net income before
taxes |
|
84.7 |
|
|
|
33.3 |
|
|
|
213.4 |
|
|
|
86.5 |
|
Adjusted tax
expense(1) |
|
(22.6 |
) |
|
|
(5.4 |
) |
|
|
(57.4 |
) |
|
|
(14.1 |
) |
|
Adjusted net income
attributable to IES Holdings, Inc. |
|
62.1 |
|
|
|
27.9 |
|
|
|
156.0 |
|
|
|
72.4 |
|
|
|
|
|
|
|
|
|
|
|
Adjustments for computation of
earnings per share: |
|
|
|
|
|
|
|
|
Increase in noncontrolling
interest |
|
(7.4 |
) |
|
|
(5.9 |
) |
|
|
(16.1 |
) |
|
|
(11.7 |
) |
|
Adjusted net income
attributable to common stockholders |
$ |
54.7 |
|
|
$ |
22.0 |
|
|
$ |
139.9 |
|
|
$ |
60.7 |
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
Basic |
$ |
2.71 |
|
|
$ |
1.09 |
|
|
$ |
6.92 |
|
|
$ |
3.00 |
|
|
Diluted |
$ |
2.67 |
|
|
$ |
1.08 |
|
|
$ |
6.84 |
|
|
$ |
2.97 |
|
|
|
|
|
|
|
|
|
|
Shares used in the
computation of earnings per share: |
|
|
|
|
|
|
|
|
Basic (in thousands) |
|
20,224 |
|
|
|
20,182 |
|
|
|
20,217 |
|
|
|
20,198 |
|
|
Diluted (in thousands) |
|
20,497 |
|
|
|
20,406 |
|
|
|
20,463 |
|
|
|
20,404 |
|
|
|
|
|
|
|
|
|
|
(1) Adjusted to
reflect the utilization of tax net operating loss carryforwards to
offset the cash impact of income tax expense for the three and nine
months ended June 30, 2023. As our tax net operating loss
carryforwards were substantially utilized in fiscal 2023, there was
no such offset to cash taxes in the three and nine months ended
June 30, 2024. |
|
IES HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(DOLLARS IN
MILLIONS)(UNAUDITED)
|
|
|
|
June 30, |
|
September 30, |
|
|
|
|
|
2024 |
|
|
|
2023 |
|
ASSETS |
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
Cash and cash
equivalents |
$ |
44.9 |
|
|
$ |
75.8 |
|
|
|
Accounts
receivable: |
|
|
|
|
|
|
Trade, net of allowance |
|
457.6 |
|
|
|
363.8 |
|
|
|
|
Retainage |
|
90.8 |
|
|
|
76.9 |
|
|
|
Inventories |
|
106.9 |
|
|
|
95.7 |
|
|
|
Costs and
estimated earnings in excess of billings |
|
57.9 |
|
|
|
48.6 |
|
|
|
Prepaid expenses
and other current assets |
|
30.5 |
|
|
|
10.5 |
|
|
Total current
assets |
|
788.6 |
|
|
|
671.3 |
|
|
|
Property and
equipment, net |
|
126.7 |
|
|
|
63.4 |
|
|
|
Goodwill |
|
94.5 |
|
|
|
92.4 |
|
|
|
Intangible assets,
net |
|
49.5 |
|
|
|
56.2 |
|
|
|
Deferred tax
assets |
|
22.5 |
|
|
|
20.4 |
|
|
|
Operating right of
use assets |
|
58.8 |
|
|
|
61.8 |
|
|
|
Other non-current
assets |
|
14.7 |
|
|
|
16.1 |
|
Total assets |
$ |
1,155.3 |
|
|
$ |
981.6 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
Accounts payable
and accrued expenses |
$ |
334.9 |
|
|
$ |
296.8 |
|
|
|
Billings in excess
of costs and estimated earnings |
|
139.3 |
|
|
|
103.8 |
|
|
Total current
liabilities |
|
474.2 |
|
|
|
400.6 |
|
|
Long-term
debt |
|
— |
|
|
|
— |
|
|
Operating
long-term lease liabilities |
|
38.7 |
|
|
|
42.1 |
|
|
Other tax
liabilities |
|
23.3 |
|
|
|
22.0 |
|
|
Other non-current
liabilities |
|
12.7 |
|
|
|
17.0 |
|
Total
liabilities |
|
548.9 |
|
|
|
481.7 |
|
Noncontrolling
interest |
|
38.9 |
|
|
|
50.0 |
|
|
STOCKHOLDERS’
EQUITY: |
|
|
|
|
|
Preferred
stock |
|
— |
|
|
|
— |
|
|
|
Common stock |
|
0.2 |
|
|
|
0.2 |
|
|
|
Treasury stock, at
cost |
|
(71.5 |
) |
|
|
(49.5 |
) |
|
|
Additional paid-in
capital |
|
203.1 |
|
|
|
203.4 |
|
|
|
Retained
earnings |
|
435.7 |
|
|
|
295.8 |
|
Total
stockholders’ equity |
|
567.5 |
|
|
|
449.9 |
|
Total liabilities
and stockholders’ equity |
$ |
1,155.3 |
|
|
$ |
981.6 |
|
|
|
|
|
|
|
|
|
IES HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(DOLLARS IN
MILLIONS)(UNAUDITED)
|
|
Nine Months Ended |
|
|
|
June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
Net income |
$ |
167.0 |
|
|
$ |
78.8 |
|
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities: |
|
|
|
|
Bad debt expense |
|
0.5 |
|
|
|
0.5 |
|
|
Deferred financing cost amortization |
|
0.2 |
|
|
|
0.2 |
|
|
Depreciation and amortization |
|
26.1 |
|
|
|
20.1 |
|
|
Gain on sale of assets |
|
(1.6 |
) |
|
|
(14.2 |
) |
|
Non-cash compensation expense |
|
4.3 |
|
|
|
3.2 |
|
|
Deferred income taxes |
|
3.8 |
|
|
|
9.4 |
|
|
Unrealized loss on trading securities |
|
|
3.3 |
|
|
|
— |
|
|
Changes in
operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
(80.3 |
) |
|
|
25.4 |
|
|
Inventories |
|
(11.2 |
) |
|
|
(8.1 |
) |
|
Costs and estimated earnings in excess of billings |
|
(0.7 |
) |
|
|
7.6 |
|
|
Prepaid expenses and other current assets |
|
(37.3 |
) |
|
|
(8.0 |
) |
|
Other non-current assets |
|
0.2 |
|
|
|
2.0 |
|
|
Accounts payable and accrued expenses |
|
31.3 |
|
|
|
(44.8 |
) |
|
Billings in excess of costs and estimated earnings |
|
34.8 |
|
|
|
24.4 |
|
|
Other non-current liabilities |
|
1.0 |
|
|
|
0.2 |
|
Net cash provided
by operating activities |
|
141.6 |
|
|
|
96.6 |
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
Purchases of
property and equipment |
|
(30.9 |
) |
|
|
(11.3 |
) |
|
Proceeds from sale
of assets |
|
2.5 |
|
|
|
20.4 |
|
|
Cash paid in
conjunction with equity investments |
|
(0.4 |
) |
|
|
(0.2 |
) |
|
Cash paid in
conjunction with business combinations |
|
(67.7 |
) |
|
|
— |
|
Net cash provided
by (used in) investing activities |
|
(96.4 |
) |
|
|
9.0 |
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
Borrowings of
debt |
|
2,089.9 |
|
|
|
1,759.0 |
|
|
Repayments of
debt |
|
(2,089.9 |
) |
|
|
(1,841.6 |
) |
|
Cash paid for
finance leases |
|
(3.0 |
) |
|
|
(2.6 |
) |
|
Noncontrolling
interest option exercised |
|
(31.2 |
) |
|
|
— |
|
|
Settlement of
contingent consideration liability |
|
(4.1 |
) |
|
|
— |
|
|
Distribution to
noncontrolling interest |
|
(13.5 |
) |
|
|
(8.5 |
) |
|
Purchase of
treasury stock |
|
(24.3 |
) |
|
|
(8.2 |
) |
Net cash used in
financing activities |
|
(76.1 |
) |
|
|
(101.9 |
) |
NET DECREASE IN
CASH AND CASH EQUIVALENTS |
|
(30.9 |
) |
|
|
3.7 |
|
CASH and CASH
EQUIVALENTS, beginning of period |
|
75.8 |
|
|
|
24.8 |
|
CASH and CASH
EQUIVALENTS, end of period |
$ |
44.9 |
|
|
$ |
28.6 |
|
|
|
|
|
|
|
|
|
IES HOLDINGS, INC. AND
SUBSIDIARIESOPERATING SEGMENT STATEMENT OF
OPERATIONS(DOLLARS IN
MILLIONS)(UNAUDITED)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
|
|
|
|
|
|
|
|
Communications |
$ |
192.3 |
|
|
$ |
141.6 |
|
|
$ |
556.6 |
|
|
$ |
430.0 |
|
|
Residential |
|
377.5 |
|
|
|
318.0 |
|
|
|
1,032.7 |
|
|
|
942.2 |
|
|
Infrastructure Solutions |
|
102.0 |
|
|
|
57.1 |
|
|
|
240.7 |
|
|
|
159.0 |
|
|
Commercial &
Industrial |
|
96.6 |
|
|
|
67.8 |
|
|
|
278.6 |
|
|
|
197.1 |
|
Total revenue |
$ |
768.4 |
|
|
$ |
584.4 |
|
|
$ |
2,108.6 |
|
|
$ |
1,728.2 |
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) |
|
|
|
|
|
|
|
|
Communications |
$ |
21.0 |
|
|
$ |
13.5 |
|
|
$ |
64.3 |
|
|
$ |
34.7 |
|
|
Residential(2) |
|
43.7 |
|
|
|
15.4 |
|
|
|
102.5 |
|
|
|
52.7 |
|
|
Infrastructure
Solution(3) |
|
19.8 |
|
|
|
8.2 |
|
|
|
46.8 |
|
|
|
21.1 |
|
|
Commercial &
Industrial(1) |
|
13.0 |
|
|
|
2.6 |
|
|
|
31.7 |
|
|
|
14.0 |
|
|
Corporate |
|
(7.3 |
) |
|
|
(5.4 |
) |
|
|
(19.4 |
) |
|
|
(15.9 |
) |
Total operating
income |
$ |
90.2 |
|
|
$ |
34.3 |
|
|
$ |
225.9 |
|
|
$ |
106.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Commercial & Industrial's operating income for the nine
months ended June 30, 2023 includes a pretax gain of $13.0 million
related to the sale of STR Mechanical.(2) Residential's operating
income for the three and nine months ended June 30, 2023 includes
pretax severance expense of $3.6 million.(3) Infrastructure
Solutions' operating income for the three and nine months ended
June 30, 2023 includes a pretax gain of $1.0 million related to the
sale of real estate.
IES HOLDINGS, INC. AND
SUBSIDIARIESNON-GAAP RECONCILIATION OF ADJUSTED
EBITDA(DOLLARS IN
MILLIONS)(UNAUDITED)
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Net income
attributable to IES Holdings, Inc. |
$ |
62.1 |
|
$ |
22.5 |
|
|
$ |
156.0 |
|
$ |
70.5 |
|
Provision for
income taxes |
|
22.6 |
|
|
8.2 |
|
|
|
57.4 |
|
|
26.4 |
|
Interest &
other expense, net |
|
1.0 |
|
|
0.2 |
|
|
|
1.5 |
|
|
1.4 |
|
Depreciation and
amortization |
|
10.6 |
|
|
6.8 |
|
|
|
26.0 |
|
|
20.1 |
|
EBITDA |
$ |
96.3 |
|
$ |
37.8 |
|
|
$ |
240.9 |
|
$ |
118.4 |
|
Gain on sale of
STR Mechanical |
|
— |
|
|
— |
|
|
|
— |
|
|
(13.0 |
) |
Gain on sale of real estate |
|
|
— |
|
|
(1.0 |
) |
|
|
— |
|
|
(1.0 |
) |
Non-cash equity
compensation expense |
|
1.4 |
|
|
1.2 |
|
|
|
4.3 |
|
|
3.2 |
|
Severance
expense |
|
— |
|
|
3.6 |
|
|
|
— |
|
|
3.6 |
|
Adjusted EBITDA |
$ |
97.7 |
|
$ |
41.7 |
|
|
$ |
245.2 |
|
$ |
111.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IES HOLDINGS, INC. AND
SUBSIDIARIESSUPPLEMENTAL REMAINING PERFORMANCE
OBLIGATIONS AND NON-GAAP RECONCILIATION OF BACKLOG
DATA(DOLLARS IN
MILLIONS)(UNAUDITED)
|
|
June 30, |
|
September 30, |
|
June 30, |
|
|
2024 |
|
2023 |
|
2023 |
Remaining performance obligations |
|
$ |
1,177 |
|
$ |
1,143 |
|
$ |
1,072 |
Agreements without an
enforceable obligation (1) |
|
|
520 |
|
|
415 |
|
|
458 |
Backlog |
|
$ |
1,697 |
|
$ |
1,558 |
|
$ |
1,530 |
|
|
|
|
|
|
|
(1) Our
backlog contains signed agreements and letters of intent which we
do not have a legal right to enforce prior to work starting. These
arrangements are excluded from remaining performance obligations
until work begins. |
IES (NASDAQ:IESC)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
IES (NASDAQ:IESC)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024